Business Tips

How To Set Up

An Offshore Company

Whether it is to save taxes, achieve greater business

freedom, protect assets, minimize reporting, or

maintain privacy, having an offshore company

(a company that conducts business outside the country

of incorporation) can be an optimum business solution.

Offshore company formation is popular amongst

international entrepreneurs, independent contractors,

consultants and traders.

Setting up an offshore company is simple with the help

of a corporate services company. The typical set up

procedures are as follows:

1) The hired consulting company collects the required due

diligence from the client.

2) The consulting company provides the client with

a detailed project plan, which includes steps to incorporate

the potential offshore company.

3) The consulting company proceeds to register the

offshore company with the suitable corporate structure.

This requires minimal client involvement.

4) After registration is complete, the consulting company

will provide the client a complete company kit including i)

original Certificate of Incorporation ii) a bound copy of

government-approved Memorandum & Articles iii) original

share certificates iv) an extract from the Public Register

illustrating company details available for public viewing

(if applicable) and v) an original government receipt as

evidence of payment of annual offshore company

registration license fees.

5) For invoicing purposes, the consulting company will

provide the client with a reputable international business

address, telephone and fax line.

It is important to note that exact offshore company set

up procedures and the duration vary according to the

jurisdiction. It is important to choose a respectable

jurisdiction that is free of any negative stigma of illegal

activities, such as money laundering and tax evasion.

Examples of popular jurisdictions in which to set up an

offshore company smoothly and relatively quickly are

Singapore and Hong Kong. These two ideal offshore

jurisdictions boast excellent international reputations to

customers, suppliers, investors, banks and other

organisations. For example, Singapore and Hong Kong

have strict client confidentiality and bank secrecy laws

and are not listed on OECD black or grey lists. This is

important, as they are not given any tax haven stigma.

Singapore and Hong Kong also have investor-friendly

business environments and are economically and

politically stable.

Regardless of jurisdiction, after offshore company

incorporation, it is advisable to consider the additional

ways your corporate services firm can assist your

offshore company to prosper. Services may include

financial services, such as assisting corporate bank

account opening, business website design and Search

Engine Optimisation (SEO), marketing services and

human resource services, such as staff recruitment

and obtaining employment visas.

Setting up an offshore company under the guidance

of a corporate services firm will help to ensure smooth

company registration and also provides the strategic

advice for successful business operation.